News

Glonhui July 2｜Raymond James initiates coverage on AppLovin, giving a “Strong Buy” rating and a target price of $640.

Glonghui, July 2 | According to market sources, Micron Technology, the semiconductor company that has become a new favorite on Wall Street due to a memory chip shortage, is taking strong action against its long-standing clients. Micron Technology CEO Sanjay Mehrotra recently stated that over the past few years, some clients had demanded that memory manufacturers lower their prices, which brought about some negative impacts. In 2023, Micron’s prices dropped to just one-third of previous levels, resulting in an inability to invest in new production capacity. He revealed that the significant price reductions imposed by certain clients on the memory industry are an important reason for the current widespread memory shortage. It is expected that the storage shortage issue may continue until 2027 or even longer, as fabs take years to build and next-generation memory production processes are even more complex. Micron’s veiled criticism is widely perceived as being directed at its major client Apple, although Mehrotra did not mention Apple by name.

According to Bloomberg, data center operator Switch has launched a $2 billion private financing round, led by a16z with an investment of approximately $400 million. Goldman Sachs and JPMorgan are assisting with the process, and the financing is intended to prepare for an IPO as early as next year. After the financing, Switch’s enterprise valuation including debt is close to $50 billion, with its equity valued at around $19 billion. Relevant negotiations are still ongoing. Switch is headquartered in Las Vegas, and the majority of its shares are held by DigitalBridge. In 2022, DigitalBridge and other investors such as IFM Investors privatized Switch in a deal valued at about $11 billion.